Houston high-rise rent drop highest in nation

CONTACT FILED: CALAIS AT COURTLANDT SQUARE APARTMENTS
construction worker wearing a cowboy-style hard hat sits atop rafters being positioned at the Calais at Courtlandt Square Apartments (at the corner of Smith and Stuart Street just south of downtown) under construction on 9-26-03. The Houston apartment market is believed by some to be overbuilt and soft. less

CONTACT FILED: CALAIS AT COURTLANDT SQUARE APARTMENTS
construction worker wearing a cowboy-style hard hat sits atop rafters being positioned at the Calais at Courtlandt Square Apartments (at the corner of Smith and Stuart Street just south of downtown) under construction on 9-26-03. The Houston apartment market is believed by some to be overbuilt and soft. less

A recent national report found further evidence of Houston's apartment glut.

Real Page, Carrollton, TX-based technology firm, found that Houston's high-rise apartment rents declined the most out of the 50 largest U.S. markets surveyed. Read the report here. Houston saw a 7.1 percent decrease in high-rise apartment rents, the steepest nationally. A wave of high-end units are coming to the market, as job growth slows and weakens, creating a glut. The Chronicle previously reported that the stumbling energy sector dampened economic growth.

Nationwide, the firm found that annual rent growth was relatively steady, at 1.4 percent increase among high-end apartments. The rate was quicker among mid-rise and garden-style apartments.

San Francisco, one the most expensive markets in the country, also saw a drop in rent prices with a 6.2 percent drop annually. The firm suggested that the pricing in the Bay Area may have been inflated in recent years. The average rent is still $3,400 a month, despite the drop in prices.